Port Jervis School District voters approved a $96 million budget with a flat property tax levy for the coming school year on May 21.
The budget is up by nearly $6 million, or 6.5 percent, from the current year.
Among the 17 or so public school districts in Orange County, Port Jervis is the only one that did not increase property tax levy to balance its budget this year, according to a review of publicly available budget data by The Epoch Times.
Beyond the current budget, the Port Jervis district tax levy has remained flat for the past three school years.
“We were really lucky that we were able to pull that off again this year,” Superintendent John Bell told The Epoch Times on May 22, adding that as a relatively poor district, Port Jervis received a larger percentage of state aid, which helped offset tax levy burden.
Responsible budgeting also helped to achieve flat tax levies, he added, especially in the face of swelling federal aid during COVID-19 and the sudden influx of state foundation aid following a court ruling years ago.
“The trick is that when there is extra money from the [government], use it on one-time expenses, like replacing computers or smart boards, and not to use it on more staff,” Mr Bell said. “Because eventually, when the music stops, and there is no money left, or there is a cut in money, you don’t have to ask taxpayers for money or lay people off.”
Over half of the budget bump this year, at $3.5 million, covers debt payments for ongoing construction projects, around 90 percent of which will be reimbursed through the state.
“We get a great building aid ratio,” Mr. Bell said. “We are trying to take care of the essential components of our facilities while the financial incentives are still there from the state.”
Inflation, increased expenses in special education, and ever-rising costs in employee health insurance and retirement benefits also contributed to the budget bump.
Like most districts, employee salaries and benefits take up the largest chunk of the budget for Port Jervis.
It costs around $40,000 per year to educate one student in the district, based on current enrollment data.
Voters also approved three district propositions on the same day: the sale of the Thomason Street building, phase four of the capital project with a price tag of around $26 million, and using up to $10 million from the fund balance to establish a new capital reserve account.
The last proposition reflects a new budgeting practice by the district this year to keep its general fund balance within the “4 percent of the budget” statutory limit set by the state.
The new practice came after the New York State’s Comptroller’s Office advised the district against piling up unspent revenue well above the statutory limit over a year ago.
On May 21, five candidates—Jason Kahmar, Marc Greene, Michael Witt, Catherine Sadaghian, and Joe Andriac—were elected to the Port Jervis school board.
Newburgh was the only school district in the county whose budget was voted down this year.
